Canada Consulting Fees For Re-Development Site

Joined
May 1, 2018
Messages
6
Reaction score
1
Country
Canada
Hello,

I have a new bookkeeping client that has purchased a residential property that he is re-developing into a hotel. For now, the income and expenses are straight forward aside from the consulting fees that he is incurring. They are substantial. I'm wondering if these expenses should be posted to an asset account and capitalized vs a normal expense account. My research tells me preliminary consulting fees can be expensed but once the project becomes probable, they should be capitalized. Any advice on accounting for developers would be great!

Thanks,

Paul
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top